WUHAN, China, April 22, 2016 /PRNewswire/ -- China
Automotive Systems, Inc. (NASDAQ: CAAS) ("CAAS" or the
"Company"), a leading power steering components and systems
supplier in China, today announced
its main subsidiary, Hubei Henglong Automotive System Group Co.,
Ltd. ("Hubei Henglong"), has sold its 51% equity control position
in Fujian Qiaolong Special Purpose Vehicle Co., Ltd. ("Fujian
Qiaolong") to Longyan Huanyu Emergency Equipment Technology Co.,
Ltd. ("Longyan Huanyu").
Terms of the transaction include a cash payment of RMB 20 million and the repayment of a
RMB 34 million loan by Fujian
Qiaolong to CAAS. Longyan Huanyu has pledged its 51% equity
interest in Fujian Qiaolong as security for the repayment of the
loan obligation.
In May 2014, CAAS entered into an
agreement to acquire a 51.0% equity control position in Fujian
Qiaolong for RMB 18.5 million
(equivalent to approximately $3.0
million) in cash, along with a loan of RMB 30.0 million ($4.8
million) to Fujian Qiaolong at an annual interest rate of
8.5%.
Mr. Hanlin Chen, Chairman of
China Automotive Systems, stated, "We believe we can better use
these resources to accomplish our core strategic goals and to
augment our ability to capitalize on our growth opportunities."
About China Automotive Systems, Inc.
Based in Hubei Province,
the People's Republic of China,
China Automotive Systems, Inc. is a leading supplier of power
steering components and systems to the Chinese automotive industry,
operating through eight Sino-foreign joint ventures. The Company
offers a full range of steering system parts for passenger
automobiles and commercial vehicles. The Company currently offers
four separate series of power steering with an annual production
capacity of over 5.0 million sets of steering gears, columns and
steering hoses. Its customer base is comprised of leading auto
manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group
Co., Ltd., BYD Auto Company Limited, Beijing Henglong Automotive
System Co., Ltd. (for Beiqi Foton Motor Co., Ltd.) and Chery
Automobile Co., Ltd. in China, and
Chrysler Group LLC in North
America. For more information, please
visit: http://www.caasauto.com.
Forward-Looking Statements
This press release contains statements that are "forward-looking
statements" as defined under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements represent our
estimates and assumptions only as of the date of this press
release. These forward-looking statements include statements
regarding the qualitative and quantitative effects of the
accounting errors, the periods involved, the nature of the
Company's review and any anticipated conclusions of the Company or
its management and other statements that are not historical facts.
Our actual results may differ materially from the results described
in or anticipated by our forward-looking statements due to certain
risks and uncertainties. As a result, the Company's actual results
could differ materially from those contained in these
forward-looking statements due to a number of factors, including
those described under the heading "Risk Factors" in the Company's
Form 10-K annual report filed with the Securities and Exchange
Commission on March 30, 2016, and in
documents subsequently filed by the Company from time to time with
the Securities and Exchange Commission. We expressly disclaim any
duty to provide updates to any forward-looking statements made in
this press release, whether as a result of new information, future
events or otherwise.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn
Investor Relations
Email: caas@compassbell.com
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SOURCE China Automotive Systems, Inc.